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Short Line Railroad Traffic Climbs 3.8 Percent, Continuing to Outpace Class I Traffic in First Half of 2006; RMI's RailConnect Index Analysis Shows Overall Growth Across Commodity Groups

Posted on: Tuesday, 1 August 2006, 09:00 CDT

RMI, the market leader and largest independent provider of accurate, reliable, comprehensive and secure rail information services to the transportation industry, today reports the RailConnect Index(R) Analysis of Traffic Statistics for the first 26-week period of 2006. In its analysis, which is designed to provide railroads and rail shippers with insight on short line growth and trends, RMI reports that short line carload traffic increased by 3.8 percent in the first half of 2006, ending July 1, 2006. Class I traffic experienced an overall increase of 3.0 percent.

The RailConnect Index is the rail industry's only source of short line traffic statistics and includes traffic summaries of 14 commodity groups from 274 short line, regional and terminal switching railroads in North America.

"The data provided in the Index highlights the continuous changes in rail traffic, quarter over quarter and year over year," explains Pete Kleifgen, Chairman of RMI. "The good news for short lines is that excluding bulk cargoes and Intermodal movements, short line carload growth was up 2.6 percent and accounted for 45 percent of all first half short line carload growth. While Intermodal accounted for 21 percent of short line year over year growth, Coal and Grain made up the balance."

Winners and Losers: Trends in Commodity Traffic

In the first quarter, traffic increased overall and two commodity groups experienced double digit growth. In the second quarter, overall growth was down, no commodities reported double digit growth in 2006 versus 2005, and four of the 14 commodity groups showed a decline. This is an overall improvement over the first quarter, when five commodity groups reported declines. Ores reported the largest negative change at -4.7 percent, an improvement over the -12.6 percent decline Ores reported in the first quarter.

Metals & Products grew at a 9.5 percent rate, faster than all other commodities on short lines compared to last year's first half. Stone, Clay & Aggregates ranked second at 8.3 percent. Farm & Food (Excluding Grain) at 8.0 percent was third in carload growth.

Overall, short line traffic grew in the first quarter of 2006 with Metals & Products; Stone, Clay, Aggregates; and Farm & Food (excluding Grain), topping the list of the top five performers in the first half of 2006.

Top Performers: 2006 verses 2005 Rankings Summary: Fastest Growth % Increase % All Carloads Carload Rank -------------------------------------------------------------------- Metals & Products 9.5% 9.6% 5 -------------------------------------------------------------------- Stone, Clay, Aggregates 8.3% 7.8% 6 -------------------------------------------------------------------- Farm & Food (Excl Grain) 8.0% 3.5% 12 -------------------------------------------------------------------- All Other 7.7% 2.6% 13 -------------------------------------------------------------------- Waste & Scrap Materials 7.5% 4.7% 10 --------------------------------------------------------------------

Traffic Comparisons

Short lines proved consistent once again quarter to quarter in types of traffic handled. Originated traffic accounted for 35 percent of all short line traffic in 2006 and in 2005. Terminated traffic accounted for 41 percent in both years and bridge traffic accounted for 10 percent in both years. Local traffic remained consistent at 14 percent in 2006 and 2005. In 2006, local traffic grew 6 percent during the first six months. Bridge traffic, the most vulnerable type of traffic for short lines, accounted for 10 percent of 2006 traffic and grew at three percent during the first half of 2006.

Overall, short line car loadings improved during the second quarter of 2006 versus the first quarter of 2006. Traffic increased 5.1 percent, versus the slow first quarter when traffic increased only 2.5 percent.

RMI Data Collection Process

RMI collects and aggregates the data for the RailConnect Index through the company's RailConnect(R) suite of services. The RailConnect applications enable more than 295 railroads and rail shippers in the U.S., Canada, and Mexico to manage rail operations, improve customer service and reduce costs. From its current RailConnect customer base, RMI processes more than seven million carloads annually for railroads, rail shippers and railcar leasing companies.

RMI's RailConnect Index Analysis is available for distribution and publication to industry analysts and trades journals. The Index is also available to RailConnect customers free of charge.

About RMI

RMI is the largest independent provider of accurate, reliable, comprehensive and secure rail information services to the transportation industry. Founded in 1979, RMI is recognized as the most successful Business Services Provider (BSP) in the industry with an in-depth knowledge of rail operations and a proven ability to translate complex business processes into valuable management information services. Currently, RMI processes approximately seven million carloads annually for railroads, rail shippers and railcar owners. RMI's services are accessed via the Internet through RailConnect(R) (www.railconnect.com), a web-based portal to the company's integrated suite of proprietary information services, which are used to manage rail operations, improve customer service and reduce costs. Services include transportation, revenue, equipment, shipper freight and fleet management services and related executive information systems. RMI is an independent, privately owned company based in Atlanta. For more information about RMI, visit www.railcarmgt.com.

Source: Business Wire

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